10 Questions
What is the main objective of the purchasing function in an organization according to Cronjé et al. (2004)?
Maintaining and increasing the business's profitability
What is involved in the selection of suppliers according to the purchasing function activities?
Selecting external sources for materials and services
What are the key components of the purchasing function, according to Cronjé et al. (2004)?
Selection of suppliers, purchasing of materials, transport of materials, deciding prices, determining quality and quantity, expediting and receiving, controlling warehousing and inventory holding
What is the significance of determining quality and quantity in the purchasing function?
Ensuring the right quality and quantity of materials and services are acquired to meet business needs
What is the purpose of expediting and receiving in the purchasing function?
To ensure timely and efficient receipt of materials and services
Which activity is responsible for ensuring that materials arrive at the business premises?
Transport of materials
What is the primary goal of the purchasing function in an organization?
To maintain and increase the business's profitability
Which activity is concerned with verifying the quality of materials and services?
Determining quality and quantity
What is the purpose of controlling warehousing and inventory holding?
To manage storage and stock levels
What is the role of expediting and receiving materials in the purchasing function?
To ensure materials are received correctly
Study Notes
Purchasing Function
- The purchasing function involves planning, organizing, leading, and controlling activities related to external purchases of materials and services to maintain and increase business profitability.
Key Activities of Purchasing Function
- Selection of suppliers
- Purchasing of materials
- Transportation of materials to the business
- Determining acceptable prices
- Determining quality and quantity of materials and/or services
- Expediting and receiving materials
- Controlling warehousing and inventory holding
Test your knowledge on the purchasing function, including key activities such as supplier selection, material purchasing, transportation, and inventory control. Learn about the importance of purchasing in maintaining business profitability. Take this quiz to assess your understanding of the purchasing function.
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